It was a huge year for bitcoin and other cryptocurrency investors in 2017, and the Bitcoin Investment Trust GBTC has come out of the gates hot in 2018 as well. While cryptocurrency remains one of the most controversial topics on Wall Street, bitcoin bulls see plenty of upside remaining.
3 Factors Driving Prices Higher
According to Argus analyst Jasper Hellweg, there are three factors driving bitcoin prices higher, and those same three factors could remain in play in 2018.
First, Hellweg says investor excitement over bitcoin’s huge move and the prospects of getting rich will continue to support the price in the near-term. These bitcoin buyers are often referred to as the “fear of missing out” or “FOMO” buyers.
Second, exchanges have recently launched bitcoin futures trading for the first time, making bitcoin trading accessible to the average retail trader for the first time.
Finally, the Lightning Network, a proposed off-chain protocol that could potentially solve bitcoin scalability concerns, is reportedly nearing completion.
Still In The Early Stages
Despite how popular and mainstream bitcoin has become in recent months, Hellweg says the bitcoin life cycle is still in its early stages.
“While it seems all but certain that there will be occasional crashes across the spectrum, it is also entirely possible that we are still in the ‘elementary school’ phase of this market’s journey,” he said on Thursday.
There are now more than 35 unique cryptocurrencies with at least $1 billion market caps, and each has its own unique set of advantages and disadvantages. In 2018 and beyond, Hellweg said the critical decision for cryptocurrency investors may not be when to invest, but where to invest.
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